The NGO sector continues to grapple with the “crisis of accountability and transparency.” By and large, the majority of NGO websites still have no information regarding their financial operations. This is in spite of growing calls for greater openness and transparency. Now more than ever, there is a need for transparent governance and effective feedback systems.
- NGO websites that make their financial operations transparent, act by a code of ethics and exhibit sound governance.
- Building the credibility of NGO websites is crucial for obtaining steady funds.
What is the importance of transparency for NGO websites?
In this section, we will consider why transparency is important for NGO websites.
a. To maintain stakeholders trusts
Globally, nonprofits are becoming more and more prominent. This growth is attributed to the rise in social issues pertaining to politics, the economy, religion, and other areas. In this sense, third-sector organisations’ social mission is to address group needs that the public sector is unable to address. Hence, NPOs must act transparently in order to maintain the trust of their stakeholders, which is essential to achieving their goals.
b. To maintain credibility
Secondly, while openness is vital for any organisation, NPOs must prove that the funds they receive are utilised to carry out their established goals; otherwise, their survival may be in jeopardy. Transparency in the information that NPOs provide to their stakeholders is a crucial component of credibility.
c. To uphold nonprofit standards
Furthermore, nonprofits undertake several critical tasks that uphold and enhance society, making them indispensable. As we all know, NGOs’ primary goal is to fulfil their social mission. Hence, they do not have a purely profit-driven purpose. Due to the nonprofit character of their work, measuring the earnings surplus as a gauge of an NGO’s performance is invalid. These organisations must adhere to the legal demands and standards for nonprofits.
d. To maintain tax-exempt status
Also, NGOs are known to receive favourable tax treatment to support their operations. As opposed to public or private sector organisations, nonprofits have historically been subject to less strict government regulation. Hence, they must make their actions more visible to allay suspicions of irregularities regarding tax benefits and public fundraising.
e. To promote visibility
Lastly, NGO websites that make their financial operations transparent, act in conformity with a code of ethics and exhibit sound governance. In addition, making information available to the public can demonstrate the due diligence of organisations. Enhanced transparency not only prevents suspicions and purported irregularities from emerging but also increases the visibility of the organisation’s actions.
Conclusion
In summary, building the of credibility NGO websites is crucial for obtaining the funds they require. By and large, this emphasises the need for management and internal control systems that can provide social and economic-financial data on organisational performance.
Furthermore, stakeholders must have access to specific information about an NPO’s operations. When NPOs disclose information to their stakeholders in a more transparent manner, they will be seen as credible.
If this article resonates with you, we welcome your thoughts, suggestions, and questions.